German packaging giant Schütz GmbH & Co. KGaA has agreed to buy a leading Mexican rigid industrial packaging company for an undisclosed sum.
Schütz announced Dec. 19 that it had signed a purchase agreement for 100 percent of the shares of Envases y Laminados SA de CV (ELSA), of Tultitlán. Tultitlán is near Mexico City.
Schütz, of Selters, Germany, and ELSA have worked together in Mexico for 20 years, with the Mexican company manufacturing and marketing Schütz intermediate bulk containers and plastic drums under license.
"We are excited about this unique opportunity to be present in Mexico with a fully owned subsidiary," said Schütz CEO Roland Strassburger.
"ELSA is well established and Mexico offers interesting growth perspectives for our industry as our customers perceive Mexico to be an integral part of the NAFTA region," he added.
Carlos Mata, ELSA's sole owner and manager, launched ELSA in 1960, initially producing metal containers. He introduced 55-gallon polyethylene drums in 1991 and in 1996 signed a technology transfer agreement with Schütz to produce closed-head PE drums in Mexico.
Mata plans to retire. He was not available for comment, but in the news release he said: "I'm extremely pleased to pass my company on to Schütz, a family-owned business like ELSA."
Founded in 1958, Schütz employs more than 5,000 at 47-plus production and service sites, including licensees, around the world. Its four business units are packaging systems, energy systems, industrial services and composites.
Its 2016 sales totaled 1.460 billion euros ($1.728 billion).
ELSA has seven manufacturing plants and claims to have the widest range of industrial containers in Mexico.